It’s well-placed to grab a bigger share of global manufacturing in the coming years.
Now, it is time for Africa
By Tom McMakin for Industry Week
Photo by IStock/Getty Images
Over the past two decades, low-cost manufacturing has transformed China and a group of other developing countries including Thailand and Vietnam.
Manufacturing now makes up around 40% of China’s GDP, 26% of Thailand’s and 16% of Vietnam’s, playing a vital role in reducing poverty, expanding the middle class and fueling consumption.
Now, it’s Africa’s turn.
That will sound unlikely to the many people who see Africa as synonymous with extreme poverty, conflict and instability. But anyone who understands the nuances of the vast continent knows that African countries are well placed to grab a bigger share of global manufacturing in the coming years. It’s a crucial strategy if they are to move up the value chain from the grueling and poorly paid jobs in resource industries and agriculture that have traditionally dominated African economies.
To understand Africa’s potential as a manufacturing hub, it’s important to stop seeing it as a monolith. The continent groups 54 economies and societies with variations as wide, if not wider, than those in Europe and Asia. Three of the five most fragile countries in the world are African, among the many nations there that suffer from high levels of corruption, violent conflict and low levels of education.
But then there are countries like Senegal, Rwanda, Mauritius, Cote D’Ivoire and Botswana that have a strong track record of economic growth, stability and education. Six of the 15 fastest-growing economies in the world are in Africa and the continent has become a must-visit destination for the titans of the U.S. tech industry.
African countries have talent in multiple languages and the youngest population of any continent. By 2055, the continent’s 15-24 year-olds are expected to be more than double the 2015 total of 226 million.